The amount of the government’s 17.3 trillion won ($15.5 billion) supplementary budget to be used for public spending may be boosted by as much as 2 trillion won.

With the tentative change, the amount of the supplementary budget allocated to spending will rise to about 7.3 trillion won.

The measure, which will be further discussed by the Special Committee on Budget and Accounts, follows criticism from the main opposition Democratic United Party that the budget supplementation plans fail to meet their “original intent.”

At the three-way talks between the government, Saenuri Party and the DUP, the opposition’s policy committee chief Rep. Byun Jae-ill called for an expenditure increase, claiming that the government’s plans were insufficient to improve economic conditions for the general public.

Although the Saenuri Party representatives agreed to the demands, the possibility remains that the two parties will again clash over the method of increasing expenditure.

The DUP has suggested reducing the funds allocated to compensate for the fall in tax revenues. Of the 17.3 trillion won, 12 trillion won will be directed to offsetting the projected drop in tax revenues under the budget supplementation plans drawn up by the government.

The Saenuri Party, however, is advising caution.

“Increasing expenditure is not being opposed, but the opposition’s suggestion of reducing (funds for compensating) tax revenue needs discussion since if taxes don’t come in, then (money) cannot be spent where it is needed,” Rep. Na Seong-lin said after the meeting.

The budget supplementation plans are also raising concerns about the snowballing government debt.

According to the Korea Financial Investment Association, the value of outstanding government bonds stands at nearly 438 trillion won.

In addition, Fitch Ratings warned Tuesday that the budget supplementation could cause delays in Seoul’s fiscal consolidation process.

The multinational ratings agency, however, maintained Korea’s “AA-” sovereign rating and stable outlook.

As the discussions continue, Saenuri Party chairman Rep. Hwang Woo-yea called for the plans to be processed “like a flash of lightning.”

“As the reason for the budget supplementation is to respond quickly to the imminent economic crisis, the parliamentary review and processes should be completed rapidly and distributed at the right time,” Hwang said at a meeting of senior Saenuri Party lawmakers on Wednesday.

In addition to the budget supplementation plans, controversial economic democratization plans were also on the parliamentary agenda on Wednesday.

Measures up for discussion include revisions calling for jail sentences of up to life imprisonment for conglomerate chiefs who make illegal gains of more than 30 billion won and revising the Amnesty Act to limit the president’s authority to pardon white-collar criminals.

By Choi He-suk  (cheesuk@heraldcorp.com)